US stocks fell today as bond yields rose and oil prices rebounded from a sell-off on Friday.
The yield on the Treasury's 10-year note rose to 5.15 per cent today from 5.11 per cent late on Friday.
Last week, investors took stubborn inflation to mean that a rate cut by the Fed was unlikely, and they sent stock and bond prices tumbling; since yields move in the opposite direction from bond prices, market interest rates soared.
The 10-year Treasury yield climbed above 5 per cent for the first time since last summer.
The Fed has kept the federal funds rate, the interest banks charge each other for overnight loans, unchanged at 5.25 per cent since last summer, following a string of increases over about two years.
While US stocks rose sharply Friday, Wall Street still logged its worst week in about three months amid interest rate concerns.
In midmorning trading Monday, the Dow Jones industrial average fell 38.60, or 0.29 percent, to 13,385.79.
Broader stock indicators fell. The Standard & Poor's 500 index fell 3.81, or 0.25 percent, to 1,503.66 and the Nasdaq composite index slipped 4.09, or 0.16 percent, to 2,569.45.
Other stock markets rose after steep declines last week.
Ireland's Iseq index was up 72.56 points at 9,454.38 at 15.56.
Japan's Nikkei stock average rose 0.31 percent and China's often-volatile Shanghai Composite Index rose 2.1 percent. Britain's FTSE 100 rose 0.57 percent, Germany's DAX index advanced 1.08 percent, and France's CAC-40 rose 0.73.
AP